Debt Advice & Support

Debt Help

Corporate Debt Recovery have partnered with The Debt Advice Service who are a family led business created to help people who are financially struggling. They are a friendly and non-judgmental team that genuinely care about their customers, which can be seen from their excellent rating on trust pilot.

They advise on a range of Debt Solutions which include,

Debt Relief Order

A Debt Relief Order or DRO provides a way of dealing with debts you can’t afford to pay. It presents an alternative to bankruptcy, and like bankruptcy, you’ll usually be discharged after a year, at which point all debts included will be cleared.*

*The caveat with this, is that any debts you obtained through fraud will still need to be repaid once the DRO comes to an end.

Debt Management Plan

A Debt Management Plan is an informal agreement between you and your creditors. A debt management company will take a close look at your financial situation and communicate with your creditors to agree on one affordable monthly payment. This one payment is divided among your creditors and will cover all your debt.

Individual Voluntary Arrangement

An Individual Voluntary Arrangement – commonly known as an IVA – is a legally binding arrangement between you and your unsecured creditors.

You agree to make a single consolidated affordable monthly repayment, typically for a period of five years. At the end of the IVA, any remaining unsecured debts are written off.

Before diving into the details of an IVA, let’s first clarify the difference between secured and unsecured debt.

Bankruptcy

Bankruptcy is a legal process that allows individuals with unmanageable debts to seek relief. It involves applying for a court order, after which your assets are distributed and sold to repay your creditors. In most cases, bankruptcy is discharged after 12 months, resulting in the cancellation of remaining debts. However, an income payment order may require you to make payments for up to three years.

The Debt Advice Service is here to help you find out what your options are and to talk you through them in plain English.

Chat with them now to find out how they can help.

Visit: https://thedebtadviceservice.co.uk/

Call: 0333 2423806

Email: [email protected]

FAQs

During the Debt Relief Order (DRO) period, you cease making payments toward the debts and interest specified in the DRO. Following the 12-month period, you will no longer be obligated to pay these debts. Upon receiving DRO approval, you will not receive any further correspondence from the Insolvency Service.

Despite obtaining debt relief, you may still be obligated to fulfill your financial commitments to creditors under certain circumstances. Furthermore, your debt relief order will be recorded on your credit history for a period of six years, potentially impacting your ability to secure credit in the future.

Typically, an IVA is more suitable if you are a homeowner and can afford monthly payments. On the other hand, a DRO may be more appropriate if you have limited or no assets and are financially unable to contribute towards your debt. If you require assistance, do not hesitate to seek professional debt advice.

A Debt Management Plan (DMP) is an informal arrangement between an individual and their creditors to settle outstanding debts. Under this agreement, the individual makes a single monthly payment that is distributed among the creditors.

An IVA may be a more suitable option for individuals whose financial circumstances are unlikely to improve and who seek a debt resolution with a definitive end date. Conversely, a DMP may be a preferable choice for those with multiple debts and an anticipated improvement in their financial situation in the near future.

An IVA has a duration of five to six years, with the potential for extension in the event of missed payments. During this period, strict adherence to the terms and conditions outlined in the agreement is required, resulting in limited control over personal finances.

An Individual Voluntary Arrangement (IVA) is noted on your credit report and will impact your credit score. An IVA is a legally binding agreement between you and your creditors, allowing you to repay your debts at a manageable rate.

An IVA may adversely affect your credit score and potentially hinder your ability to secure additional credit. If you require borrowing exceeding £500, you must seek authorisation from your IP. Upon completion of the IVA, the details will remain on your credit file for a period of six years from the commencement of the arrangement.